Calculate net revenue or revenue

Assignment Help Microeconomics

Reference no: EM13125419

The benefits and costs of an investment project (the purchase of a piece of machinery) are those given in the following table. In excel, calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue. Add together column F to get the net present value of the project. Should the firm purchase the machine?

End of Year Investment Revenue NE PV Coefficient 1/(1+0.5)n PVNR

0 1000 ----

1 200 600

2 300 800

3 300 800

4 400 800

4 --- 200 (salvage value)

Reference no: EM13125419

Questions Cloud

What will be the equililrium concentration of c : the equilibruium constant Kc for the reaction A(g)+ B(g)----> C9(g) is 0.76 at 150C. If 0.800 mol of A is aded to 0.600 mol of B in a 1.00-L container at 150degrees C

Practice thinking critically about research topics and sourc : Assignment Goal: Practice thinking critically about research topics and sources. Post your completed worksheet on Blackboard.

Applications to perimeter of rectangle : Write as a system of 2 equations in 2 unknowns. Solve each system by substitution and show each step. Perimeter of a rectangle : the length of a rectangular swimming pool is 15 feet longer than the width.

Estimate the amount of variable price : A recent newspaper article describing no-frills fitness centers indicated that a Snap Fitness site might require only 300 members to break even. Using the information provided above, and your knowledge of CVP analysis, estimate the amount of vari..

Calculate net revenue or revenue : Calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue.

Explain empirical and molecular formula of adrenaline : Empirical and Molecular Formula of Adrenaline, Adrenaline contains 59% C, 7.1% H, 26.2% O and 7.7% N and has a molar mass of about 180 g/mol.

Solve the system of equations by substitution method : Solve the system of equations by the substitution method. State whether equation is independent, dependent, or inconsistent.

Find probability number of people in sample have disease : Consider a simple random sample of n=116 people. Denote by X the number of people in the sample that have the disease. Calculate the following probabilites. P(X=23)=?

Direct method for reporting a statement of cash flows : What are some of the arguments in favor of using the indirect (reconciliation) method as opposed to the direct method for reporting a statement of cash flows?

User Account

All Pages